Where do your tendencies lie within the realm of hope, fear and greed? It is rather important that you know...>>read more

Saturday, July 21, 2012

Another week, another $1000 E-mini bucks

Following the massacre in Colorado, nationally and around the world, this week ended on a rather solemn and disturbing note. We extend our deepest condolences to all of the innocent family’s and victims of this most heinous crime.

As for the equity markets, they ended the week simply on a sour note.

Despite the plethora of challenges strewn throughout the financial sphere, a sudden resumption of euphoria, which rocketed the S&P north of 1370 (the May 2011 high) diminished as concerns resurfaced suddenly.

Though minor in contrast to the 8.97% rally from its 1266.74 low in June, the S&P ended Friday’s session down 13.85 giving back a tad more than 1% of its recent bull run.

No matter how ugly the fundamentals, no matter how corrupt the system as a whole, and no matter how bad the technical situation gets on occasion, embedded bulls will simply not go down with anything short of the declaration of World War-III. Perversely, even that would likely spark a rally.

Have no Fear the Next Generation is here:

The next generation of Elliott Wave that is. Simply put, we have taken Elliott Wave theory along with the basic tenets of technical analysis, and we have fused these disciplines algorithmically into mathematically coded non-discretionary trading models. We share them by subscription for the advantage of speculators and investors across all time horizons.

Just as we are optimistic that the youngest of our generation will beat the odds and prevail against all that plagues the system as a whole, we place similar faith in the trading methodologies that we have designed to beat the current dynamic regardless of its level of dysfunction.

Two profitable occurrences have taken place in the above chart:

First, on Thursday, as so noted by the BAM graphic, we had set a manual discretionary boundary for short-term S&P bulls to observe. It had set a line in the sand from which a breach would invoke target to a 9-pt. drop to the 1360 target. Mission Accomplished.

Second, on Friday, our trading platform sent out a system generated (non-discretionary) bearish alert for short-term bulls to take more than $1000 per contract in profits on longs, and reverse short, which we did at 1363.25.

As highlighted within our daily balance sheet below, these new short positions are up by 4 ½ points, and have open profits of $225 per contract. Mission Accomplished.